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Leases
 12 Months Ended
Jun. 30, 2022
Leases [Abstract]  
Leases Leases
The Company evaluates contracts for lease accounting at contract inception and assesses lease classification at the lease commencement date. Operating leases are included in operating lease right-of-use ("ROU") assets, operating lease liabilities and operating lease liabilities - long-term on the Company's consolidated balance sheets. Finance leases are included in property, plant and equipment, finance lease liabilities and finance lease liabilities-long-term on the consolidated balance sheets. The Company recognizes a ROU asset and corresponding lease obligation liability at the lease commencement date where the lease obligation liability is measured at the present value of the minimum lease payments. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate at lease commencement. The Company uses an interest rate commensurate with the interest rate to borrow on a collateralized basis over a similar term with an amount equal to the lease payments. Operating leases are primarily related to offices, research and development facilities, sales and marketing facilities, and manufacturing facilities. In addition, long-term supply agreements to lease gas tank equipment and purchase industrial gases are accounted for as operating leases. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. For operating leases, the amortization of the ROU asset and the accretion of its lease obligation liability result in a single straight-line expense recognized over the lease term. The finance lease is related to the machinery lease financing with a vendor. In addition, the finance lease related to the RMB 400.0 million of lease financing of the JV Company with YinHai Leasing Company and The Export-Import Bank of China was not included in the Company’s Consolidated Balance Sheet at June 30, 2022 due to the deconsolidation of the JV Company on December 2, 2021. The Company does not record leases on the consolidated balance sheet with a term of one year or less.
The components of the Company’s operating and finance lease expenses are as follows for the years presented (in thousands):

Fiscal Year Ended June 30, 2022Fiscal Year Ended June 30, 2021
Operating leases:
     Fixed rent expense$6,262 $6,760 
     Variable rent expense946 815 
Finance lease:
     Amortization of equipment908 2,200 
     Interest976 2,168 
Short-term leases:
     Short-term lease expenses205 221 
               Total lease expenses$9,297 $12,164 
Supplemental balance sheet information related to the Company’s operating and finance leases is as follows (in thousands, except lease term and discount rate):

June 30, 2022June 30, 2021
Operating Leases:
     ROU assets associated with operating leases$23,674 $34,660 
Finance Lease:
     Property, plant and equipment, gross$4,831 $114,404 
     Accumulated depreciation(136)(96,470)
          Property, plant and equipment, net$4,695 $17,934 
Weighted average remaining lease term (in years)
     Operating leases7.428.44
     Finance lease5.001.72
Weighted average discount rate
     Operating leases4.27 %4.67 %
     Finance lease4.76 %5.46 %

Supplemental cash flow information related to the Company’s operating and finance lease is as follows (in thousands):

Fiscal Year Ended June 30, 2022Fiscal Year Ended June 30, 2021
Cash paid from amounts included in the measurement of lease liabilities:
     Operating cash flows from operating leases$6,480 $6,496 
     Operating cash flows from finance lease$976 $2,168 
     Financing cash flows from finance lease$4,176 $16,451 
Non-cash investing and financing information:
     Operating lease right-of-use assets obtained in exchange for lease obligations$5,852 $5,585 

Future minimum lease payments are as follows as of June 30, 2022 (in thousands):

Operating LeasesFinance Leases
2023$5,206 $993 
20244,053 1,083 
20253,222 1,083 
20263,176 1,083 
20273,147 1,076 
Thereafter10,337 — 
Total minimum lease payments29,141 5,318 
Less amount representing interest(4,413)(584)
Total lease liabilities$24,728 $4,734 
Leases Leases
The Company evaluates contracts for lease accounting at contract inception and assesses lease classification at the lease commencement date. Operating leases are included in operating lease right-of-use ("ROU") assets, operating lease liabilities and operating lease liabilities - long-term on the Company's consolidated balance sheets. Finance leases are included in property, plant and equipment, finance lease liabilities and finance lease liabilities-long-term on the consolidated balance sheets. The Company recognizes a ROU asset and corresponding lease obligation liability at the lease commencement date where the lease obligation liability is measured at the present value of the minimum lease payments. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate at lease commencement. The Company uses an interest rate commensurate with the interest rate to borrow on a collateralized basis over a similar term with an amount equal to the lease payments. Operating leases are primarily related to offices, research and development facilities, sales and marketing facilities, and manufacturing facilities. In addition, long-term supply agreements to lease gas tank equipment and purchase industrial gases are accounted for as operating leases. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. For operating leases, the amortization of the ROU asset and the accretion of its lease obligation liability result in a single straight-line expense recognized over the lease term. The finance lease is related to the machinery lease financing with a vendor. In addition, the finance lease related to the RMB 400.0 million of lease financing of the JV Company with YinHai Leasing Company and The Export-Import Bank of China was not included in the Company’s Consolidated Balance Sheet at June 30, 2022 due to the deconsolidation of the JV Company on December 2, 2021. The Company does not record leases on the consolidated balance sheet with a term of one year or less.
The components of the Company’s operating and finance lease expenses are as follows for the years presented (in thousands):

Fiscal Year Ended June 30, 2022Fiscal Year Ended June 30, 2021
Operating leases:
     Fixed rent expense$6,262 $6,760 
     Variable rent expense946 815 
Finance lease:
     Amortization of equipment908 2,200 
     Interest976 2,168 
Short-term leases:
     Short-term lease expenses205 221 
               Total lease expenses$9,297 $12,164 
Supplemental balance sheet information related to the Company’s operating and finance leases is as follows (in thousands, except lease term and discount rate):

June 30, 2022June 30, 2021
Operating Leases:
     ROU assets associated with operating leases$23,674 $34,660 
Finance Lease:
     Property, plant and equipment, gross$4,831 $114,404 
     Accumulated depreciation(136)(96,470)
          Property, plant and equipment, net$4,695 $17,934 
Weighted average remaining lease term (in years)
     Operating leases7.428.44
     Finance lease5.001.72
Weighted average discount rate
     Operating leases4.27 %4.67 %
     Finance lease4.76 %5.46 %

Supplemental cash flow information related to the Company’s operating and finance lease is as follows (in thousands):

Fiscal Year Ended June 30, 2022Fiscal Year Ended June 30, 2021
Cash paid from amounts included in the measurement of lease liabilities:
     Operating cash flows from operating leases$6,480 $6,496 
     Operating cash flows from finance lease$976 $2,168 
     Financing cash flows from finance lease$4,176 $16,451 
Non-cash investing and financing information:
     Operating lease right-of-use assets obtained in exchange for lease obligations$5,852 $5,585 

Future minimum lease payments are as follows as of June 30, 2022 (in thousands):

Operating LeasesFinance Leases
2023$5,206 $993 
20244,053 1,083 
20253,222 1,083 
20263,176 1,083 
20273,147 1,076 
Thereafter10,337 — 
Total minimum lease payments29,141 5,318 
Less amount representing interest(4,413)(584)
Total lease liabilities$24,728 $4,734